Supported by the August Property Monitor Report, August 2024 marked another record-setting month for Dubai’s real estate market, breaking new grounds in sales transactions, price appreciation, and off-plan market dominance. The market’s upward trajectory continued, with August setting its own milestones, building on what has already been an extraordinary year for Dubai real estate.
Dubai’s Price Growth Surges
One of the most notable highlights of the month was the remarkable price growth. Property prices rose by 2.48% month-on-month, more than doubling July’s increase of 1.22%. This surge is largely due to the rapid expansion of new off-plan projects, which have dominated areas that previously experienced a balance between new and ready properties. However, older units are seeing more moderate price appreciation compared to their newly constructed counterparts.
The average price per square foot now stands at AED 1,431—an astonishing 16% higher than the previous market peak in September 2014. This brings the total market growth since late 2020 to 56.8%. These numbers reflect the booming interest in Dubai real estate, especially as international investors continue to see the emirate as a prime location for property investment.
Record-Breaking Sales Transactions
August saw a slight uptick in sales transaction volumes, increasing by 0.28% and reaching a total of 16,145 transactions. This figure makes August the highest-ever recorded month for transactions in its category and the second-highest month on record overall. Apartments, townhouses, and villas accounted for a whopping 93.9% of these transactions, showing strong demand for residential properties across the emirate.
In terms of commercial properties, the highest activity was seen in office spaces, vacant land, and hotel apartments.
Emaar Dominates the Off-Plan Market
Emaar continued its dominance in the off-plan market, closing just under 2,500 off-plan sales in August alone. Off-plan project launches have hit record highs, contributing to the soaring transaction numbers and now making up over 70% of the market share. With nearly 7,400 off-plan units launched, and more on the way, developers are not showing signs of slowing down.
The off-plan inventory is predominantly apartments, but the market also saw a significant contribution from townhouses and villas. Notably, new developments in areas like Dubai Islands, Jumeirah Garden City, and Motor City are expected to play a huge role in driving the market forward in the coming months.
Mortgage Market Takes a Breather
Mortgage transactions dipped by 10.1% in August compared to July, but this downturn aligns with expectations. Many potential buyers are waiting for anticipated rate cuts expected at the upcoming US Federal Open Market Committee (FOMC) meeting. Once interest rates begin to drop, mortgage activity is likely to rebound, especially through refinancing as borrowers look to take advantage of the more favorable conditions.
The decrease in mortgages for new purchases suggests buyers are holding out for rate cuts. Meanwhile, refinancing and equity release loans saw a small uptick in market share, indicating that current homeowners are tapping into their home equity.
Looking Ahead: Sustained Growth on the Horizon
With nearly 86,000 new units launched year-to-date and many more on the way, the market’s upward momentum shows no signs of slowing down. As Dubai continues to experience robust economic growth and becomes an increasingly attractive destination for international investors, the demand for both off-plan and ready properties is set to rise.
However, as mortgage rates begin to ease, we could see a shift in demand towards ready properties—assuming sellers price their units correctly. While the off-plan market is likely to remain the dominant force, the ready property market could experience a bump in activity as affordability improves for buyers.
August 2024 has been a record-breaking month in many respects, but the year is far from over. If trends continue as they have, we could be witnessing the most successful year in Dubai’s real estate history. Whether you’re a first-time buyer, seasoned investor, or looking for your next home, now could be the time to explore Dubai’s thriving property market.
All statistics are provided by Property Monitor- the region’s leading real estate intelligence platform.
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